Sterne Agee Still Has Confidence In Actavis plc

In a report published Wednesday, Sterne Agee analyst Shibani Malhotra reiterated a Buy rating and $272.00 price target on Actavis plc (NYSE: ACT).

In the report, Sterne Agee noted, “Although Actavis failed to garner support at today's FDA AdCom for the product, we do not see this as being very meaningful to longer-term growth and earnings potential. Per our estimates, removing this product from our revenue estimates decreases our 2018E EPS by less than 1% (see Exhibit 1 below). We believe that the company still has many levers to drive meaningful EPS growth and easily reach its 2017 EPS target of ~$20.”

Actavis closed on Tuesday at $232.61.